Digital River

Company Info

The main activity of the company is providing, mainly, to software suppliers, games and consumer electronics of a technology platform for the organization of online trade on own websites. The platform includes a hosting of the websites, order management, cloud billing, tools on fraud prevention, etc. In addition the company provides to customers different related services.

Among large customers of Digital River there are companies Microsoft Autodesk Kaspersky Lab Samsung, Lenovo and others.

As of May, 2013 the company had 31 offices in North and South America, Asia and Western Europe.

Performance Indicators

Digital River revenue in 2012 made $386.2 million, having reduced by 3% in relation to 2011 Year the company finished with net loss in $195.9 million against net profit in $17.2 million in 2011.

According to the head of the company David Dobson, in 2012 Digital River cut down operating expenses, however it appeared insufficiently for maintenance of that level of profitability which was a year ago.

The chief financial officer of Digital River Stefan Schultz in February, 2013 among the steps directed to improvement of indicators of activity of the company noted the direction of smaller efforts to development of business services which are provided by the company, such as marketing, and concentration on key business of the company - the help to the companies under the authority of online sales and also reduction of number of the data centers for benefit of use of cloud computing.

Opening of office in Russia

In May, 2013 Digital River announced opening of office in Moscow. Presence here and support to clients - to the multi-national companies will allow to solve a number of the main problems which they face, selling the products in Russia, believe in Digital River. The company, for example, refers risk management to such problems, connected with respect for precepts of law.

"Work in the field of e-commerce in Russia requires deep understanding of behavior of local buyers and also following to legal requirements and regulations, - the executive vice president of Digital River John Strosal says. - Our presence in the country should become access point for more effective representation to the multi-national companies of this region having the considerable potential for sales".

Otherwise the multi-national companies can treat work in the field of electronic business in Russia as to precepts of law, unreasonably expensive and risky in terms of compliance, John Strosal adds.

For ensuring online sales in the Russian market the company also integrated services of the payment methods, most popular in Russia, into own platform.

It should be noted that in a number of the Russian media Digital River appeared in quality of one of applicants for Softkey acquisition after at the end of 2011 there was information on readiness of IBS Group to sell a share in this company.